Knowledge is power and applying what you know about your landlord tenant law can put money in your pocket!  Landlord tenant law protects all parties involved, and in many cases this protection is financial.  If you thought you could improve your cash flow by reading a copy of the landlord tenant law, would you do it?  Here’s an example that might motivate you:

I have a building that has a single thermostat in one of the units that controls the heat for the entire building.  The heating system consists of radiators and a boiler.  One winter month we had received the electric bill and it was through the roof!  You expect that in January, but this was excessive.

Shortly thereafter one of the tenants called to say he was super hot in his apartment and had to leave the windows open to cool off.  I went into the unit to look at the thermostat, and sure enough, it was set to 75 degrees!  People in snowy states generally leave their heat set at 68 degrees in the evening and cooler when gone or asleep or your bill gets really high, quick.  Suffice it to say, our cash flow was gone that month.

Despite our friendly, then stern, talks with the tenant to turn the heat down, he would not do it.  Good thing the landlord tenant law was on our side and we knew it.  The local landlord tenant law said that landlords need to provide heat to 67 degrees.  How soon do you think a lock box went over that thermostat?

It pays to know the landlord tenant law, literally!  Do you know the nitty gritty of the law in your state?  If you want to maximize your cash flow, you must.  What if your tenant knows the law better than you do?  Many investors have never read a copy of their landlord tenant law.  Sometimes we copy what others are doing and assume it must be right.  Be a leader, not a follower!

Search the internet using the words landlord tenant law, followed by the name of your state.  You will quickly find several sources of the statutes.  Print out a copy of the landlord tenant law and read the pages front to back.  Use a highlighter as you go, and take notes on the important parts.  If you have trouble interpreting what the law says, call your local apartment association for help.  Answer some key questions for yourself:

- How are security deposits handled?

- Restrictions on rent increases?

- Can I charge late fees?

- How do evictions work?

- What constitutes notice?

- Who is responsible for what?

- How do leases end and renew?

Knowledge of the landlord tenant law will help you save time, gain the respect of your tenants, and improve your cash flow.  It can also serve as an important layer of liability protection.  Go ahead and read your landlord tenant law now, and see what it can do to improve your bottom line!